Does Caption By Hyatt consider some Confidential Information to be trade secrets?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates possess (and will continue to develop and acquire) Confidential Information, some of which constitutes trade secrets under applicable law, relating to developing and operating Brand Hotels. "Confidential Information" includes: (1) site selection criteria; (2) the substance, design, and construction of Brand Hotels and the Design and Construction Standards; (3) training and operations materials and modules; (4) methods, formats, specifications, standards, systems, procedures, sales and marketing techniques, knowledge, and experience used in developing and operating Brand Hotels; (5) marketing, advertising and promotional programs
for Brand Hotels; (6) Guest Information (defined below) and any information and data relating to guests and customers of other Brand Hotels and/or other Hyatt Network Hotels; (7) knowledge of specifications for and suppliers of FF&E and other products and supplies that are uniquely identified with Brand Hotels and/or other Hyatt Network Hotels; (8) any part of the Technology System and other computer software or other technology that is proprietary to us, our affiliates or the Hotel System, including digital passwords and identifications and any source code of, and data, reports, and other printed materials generated by, the software or other technology; (9) knowledge of the operating results and financial performance of Brand Hotels other than the Hotel; (10) graphic designs and related intellectual property; and (11) any negotiated provisions of the Franchise Agreement and any other agreements we sign with you**.**
Confidential Information is proprietary and includes our and our affiliate's trade secrets. You (a) must not use (or allow your affiliates to use) Confidential Information in any other business or capacity; (b) must keep confidential each item that is a part of Confidential Information, both during and after the Franchise Agreement's term (afterward for as long as the item is not generally known in the hotel industry); (c) must not make unauthorized copies of any Confidential Information disclosed via electronic medium or in written or other tangible form; and (d) must adopt and implement reasonable procedures that we periodically specify to prevent unauthorized use or disclosure of Confidential Information.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 68–71)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, some of the brand's Confidential Information constitutes trade secrets under applicable law. This means that Caption By Hyatt considers certain proprietary information crucial to the brand's operation and success as legally protected trade secrets.
The FDD specifies that Confidential Information includes items such as site selection criteria; the substance, design, and construction of Brand Hotels and the Design and Construction Standards; training and operations materials and modules; methods, formats, specifications, standards, systems, procedures, sales and marketing techniques, knowledge, and experience used in developing and operating Brand Hotels; marketing, advertising and promotional programs for Brand Hotels; Guest Information and any information and data relating to guests and customers of other Brand Hotels and/or other Hyatt Network Hotels; knowledge of specifications for and suppliers of FF&E and other products and supplies that are uniquely identified with Brand Hotels and/or other Hyatt Network Hotels; any part of the Technology System and other computer software or other technology that is proprietary to Caption By Hyatt, its affiliates or the Hotel System; knowledge of the operating results and financial performance of Brand Hotels other than the Hotel; graphic designs and related intellectual property; and any negotiated provisions of the Franchise Agreement and any other agreements signed with the franchisee.
As a Caption By Hyatt franchisee, you are obligated to protect this Confidential Information. You must not use it in any other business, keep it confidential during and after the franchise term, avoid unauthorized copies, and implement reasonable procedures to prevent unauthorized use or disclosure. This obligation extends even before signing the Franchise Agreement, as you must keep confidential all information concerning development plans, strategies, operations, processes, and System Standards.
The FDD also outlines exceptions where information is not considered confidential, such as information already known to you or generally known in the hotel industry. However, the burden of proof lies on the franchisee to demonstrate that these exclusions apply. This emphasis on protecting Confidential Information highlights its importance to Caption By Hyatt and the potential legal ramifications for franchisees who fail to safeguard it.